SEC Approves First Spot Ethereum ETFs (2024)

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SEC Approves First Spot Ethereum ETFs? ›

The US Securities and Exchange Commission has approved the first spot Ethereum exchange-traded funds (ETFs). Trading for these ETFs began on July 23, 2024. This follows the successful launch of Bitcoin ETFs earlier this year, paving the way for increased institutional investment in Ethereum.

US regulators have approved the first US exchange-traded funds investing directly in Ether, the world's second-largest cryptocurrency — a step that seemed like a virtual impossibility at the start of 2024.

After years of facing regulatory flux and volatility, crypto got a major boost this year, with the SEC approving eight spot Ethereum (Ether) ETF applications, thereby allowing their listing on major US exchanges.

Key Takeaways. The U.S. SEC has approved spot ether ETFs to likely begin trading on Tuesday. Spot ether ETFs have been assumed to begin trading this summer since the SEC first reversed course on the matter in May.

Following the approval and launch of Bitcoin Exchange Traded Funds (EFTs) in January 2024, the U.S. Securities and Exchange Commission (SEC) approved eight Ethereum ETFs for listing and trading on SEC-regulated exchanges on May 23, 2024.

U.S. regulators have officially cleared the way for spot exchange-traded funds (ETFs) linked to the cryptocurrency ether to begin trading. Ether is the virtual currency of the Ethereum blockchain and is the world's second-largest cryptocurrency. Trading is expected to begin July 23.

Following the success of spot bitcoin ETFs at the start of 2024, the U.S. Securities and Exchange Commission (SEC) approved nine spot ether ETFs for trading on July 23, 2024, giving everyday investors another opportunity to diversify into cryptocurrency.

Your clients can now invest indirectly in ether cryptocurrency with Fidelity^® Ethereum Fund (FETH), giving you another way to consider integrating digital assets into your practice.

Predictions for the impact the ether ETF might have on the token's price vary widely, with global bank Standard Chartered estimating that ether could hit $8,000 by the end of the year. VanEck, which is set to launch a spot ether ETF, in May raised its price target for ether to $22,000 by 2030.

What are the spot Ethereum ETFs? ›

A spot Ethereum ETF is an investment vehicle that pools money from investors to purchase Ethereum directly. The fund is managed by an investment firm and is traded on a traditional stock exchange, providing a more accessible and regulated way to trade digital currency.

The Bottom Line. Spot ether ETFs, which began trading in July 2024, offer investors a means of gaining exposure to the ETH cryptocurrency market through a regulated and accessible fund.

While spot bitcoin ETFs are a hard act to follow, BlackRock's iShares Ethereum Trust ETF — one of nine spot ether ETFs that began trading in the U.S. on July 23 — managed to attract $1 billion of net inflows in its first month despite a tough market backdrop, a Bloomberg Intelligence ETF analyst said.

The SEC's approval of Ethereum ETFs is poised to significantly boost Ethereum's market position. Institutional investors, who have been sitting on the sidelines due to regulatory concerns, are now expected to enter the market, bringing with them substantial capital and market influence.

After last month's unexpected approval of spot Ether ETFs, issuers have now received the final green light for their latest S-1 filings. Trading is now live as of today, July 23, for the following ETF products: BlackRock, VancEck, Fidelity, 21Shares, Bitwise, Franklin Templeton and Invesco Galaxy.

ETHA – The Ethereum Trust ETF | iShares – BlackRock.

The Bottom Line. The first ETF was launched in Canada in 1990, which paved the way for the introduction of the first U.S. ETF, the SPDR S&P 500 ETF Trust, in 1993.

Most ETPs are structured as ETFs, which are registered with and regulated by the SEC as investment companies under the Investment Company Act of 1940.